How much does renovation and remodeling contractor insurance cost?

Renovation businesses and contractors pay an average of $87 per month, or $1,039 per year, for general liability insurance. Some renovation businesses need proof of insurance for this policy to sign a commercial lease or a client contract.

A general liability policy can pay for medical expenses from third-party injuries, such as a homeowner tripping over debris from a wall removal. It covers costs if someone sues your business over a bodily injury, property damage, or advertising injury.

This is the average policy for contractors who buy from Insureon:

Premium: $87 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of a general liability insurance policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Construction businesses and contractors pay an average of $98 per month for a business owner's policy, or $1,173 annually. Only small, low-risk businesses are eligible for a BOP.

A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.

This is the average business owner's policy for a construction contractor who buys from Insureon:

Premium: $98 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic, and the value of your business property.

Construction businesses and contractors pay an average of $254 per month for workers’ compensation insurance, or $3,054 annually. Most states require this coverage for home renovation businesses that have employees.

Workers' comp helps pay for medical costs from work-related injuries and illnesses, such as a back injury from installing a granite countertop. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

The cost of a workers' compensation policy depends on factors such as the number of employees and the type of work they do. Learn more about how workers' comp costs are calculated.

Construction and contracting businesses pay an average of $173 per month, or $2,075 per year, for commercial auto insurance.

Most states require this coverage for vehicles owned by a home improvement company. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

Commercial auto insurance covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal costs. When buying a policy, you'll need to make sure your coverage limits match the requirements in your state.

The cost of a commercial auto policy depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium.

Construction businesses and contractors pay an average of $14 per month for contractor’s tools and equipment insurance, or $169 annually.

A form of inland marine insurance, this policy covers your property whether it’s in your office, in transit, or at a job site. It can pay for lost, stolen, or damaged tools and equipment valued at $10,000 or less.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Construction businesses and contractors pay an average of $74 per month, or $886 per year, for professional liability insurance. Renovation contractors can sometimes bundle this coverage with general liability insurance, at a combined average price of $112 monthly.

Professional liability insurance covers legal fees related to professional negligence, such as failure to use the correct materials. It's sometimes called errors and omissions insurance or E&O insurance.

This is the average coverage and pricing for contractors who buy from Insureon:

Premium: $74 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and the renovation and remodeling services you offer. Find out how insurers set professional liability insurance premiums.

Construction businesses and contractors pay an average of $81 per month, or $977 annually, for commercial umbrella insurance, which you can buy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.

Umbrella insurance provides an additional safeguard and helps renovators and remodelers meet contractual demands for higher limits. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Construction businesses and contractors pay an average of $105 per month, or $1,259 per year, for builder's risk insurance. This type of business insurance is also called course of construction insurance.

A builder's risk insurance policy provides coverage for structures and materials during a construction project. It will help pay for fires, vandalism, and other types of damage to a structure in progress.

The cost of builder's risk insurance depends on the value of the structure, including materials and labor.

Construction contractors and businesses pay an average of $8 per month, or $100 per year, for a surety bond.

A surety bond reimburses your client if you're unable to fulfill the terms of a renovation contract or other agreement. You may need a surety bond to get a contractor's license for certain types of work.

The cost of a surety bond primarily depends on the size of the bond.